North Carolina officials are suing Vietnamese electric-vehicle manufacturer Vinfast in an effort to reclaim Chatham County land for future economic development projects.
The state’s attorney general, Jeff Jackson, said the state wants to exercise an option to buy back land it agreed to sell the company after it promised to build a multibillion-dollar factory and create thousands of jobs.
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Jackson alleges the company failed to meet construction deadlines it agreed to with the state and that the state therefore has the right to buy back the land under a 2022 buyback deal. Doing so, the state says, will help it preserve the site for future economic development opportunities.
"VinFast agreed to build a factory and create jobs for North Carolinians – it didn’t do either,” Jackson said. “When North Carolina makes a deal, we build in protection for taxpayers. VinFast broke the deal, so we’re using that protection to find a project for this site that will create jobs.”
VinFast announced the deal in March 2022, expecting to invest more than $2 billion and aiming to create 7,500 jobs. At the time, it expected to begin construction that year and begin production by the middle of 2024.
VinFast executives agreed to a deal in November 2022 that would allow the state to buy back the property if it failed to begin vertical construction by January 1, 2024, or commence operations by July 1, 2026.
Jackson alleged in the lawsuit Thursday that the company has failed to begin vertical construction and that it is highly unlikely to commence operations by July. According to Jackson, the state Department of Justice notified the company in January that it had defaulted on its agreement, and the state would begin taking steps to get the land back.
In March, the company had submitted a plan to restart construction at the facility by the end of the year. The company has argued to the state that it has built footers, wind columns and vertical walls for water basins — things it says constitute vertical construction.
It was unclear late Thursday whether VinFast has canceled its expansion plans or if it still intends to finish the project, but on a delayed timeline. A company spokesperson didn’t immediately respond to a request for comment.
VinFast’s plans were projected to grow the state’s economy by at least $71.59 billion over 32 years. The state agreed to a job-creation grant that would provide up to $316.1 million to the company in tax reimbursements over that span, provided it meets hiring and investment targets. So far, none of that proposed grant money has been paid out to the company.
The company has told investors and regulators as recently as last month that it expects to begin production in 2028. The company says it began construction in July 2023 and that a review of the facility design was ongoing. As of Dec. 31, VinFast had spent $301.2 million on the project, the company said in an April 30 regulatory filing.
State lawmakers have appropriated $450 million to support preparation for the site, transportation improvements, and water and sewer infrastructure associated with the project. Economic developers are often willing to make such investments in state land — even if there’s a chance a project might fall through. Doing so helps the state preserve marketable land for other economic development projects. State and local economic developers have indicated that companies continue to seek sites in North Carolina for major expansions.
“North Carolina will always compete aggressively for jobs and investment, but we also protect taxpayers by requiring the company to hold up its end of the deal,” said Governor Josh Stein. “VinFast has not fulfilled its commitments. Today’s action is about protecting taxpayers and getting the Chatham County mega-site back on the market to support future good-paying manufacturing jobs.”
Even though VinFast has been growing in other international markets — for instance, its revenue more than doubled in Asia in 2025 — it has struggled to grow in the U.S. The company has long warned of risks associated with expanding in the U.S. As early as 2023, the company warned that its success in the U.S. could be hindered by the potential loss of incentives for buyers and manufacturers of electric vehicles.
The Inflation Reduction Act of 2022, approved under Democratic President Joe Biden, offered some buyers of EVs a $7,500 tax credit, provided a certain percentage of the vehicle was manufactured or assembled in the U.S. The company said its North Carolina plant would have helped U.S. customers qualify for the credit. In a regulatory filing, it warned: “If current tax incentives are not available in the future, demand for EVs may stagnate or decline, which could adversely affect our business, financial condition, results of operations, cash flows and prospects.”
Legislation signed by Republican President Donald Trump last year ended the $7,500 tax credit, and the company. VinFast asked state officials to extend the development timeline after Trump had expressed a desire to end the tax credits. The state denied the extension request.
“North Carolina’s economic development strategy is built on strong partnerships and performance-based agreements that are designed to protect the public interest,” Commerce Secretary Lee Lilley said in a statement. “While we remain committed to supporting projects and long-term growth, we also have a responsibility to ensure that contractual obligations tied to taxpayer-supported incentives are fulfilled.”